Fonterra Co-operative Group Limited

Our background with Fonterra

Fonterra is a global co-operatively owned dairy nutrition company which includes well-known brands such as Bega and Mainland cheese and Western Star butter among others. In August 2013 FCM commenced the task of implementing 16 individual markets for a travel program comprising more than 6000 travellers world-wide.

Here's how we made it possible.

Background

Previously this account was managed by a single TMC however there was no global structure or unified global program, each country operated independent of one another.

Fonterra previously utilised multiple reporting platforms across its 16 markets to manage travel reporting requirements, this has subsequently been consolidated into a single platform using FCM ClientBank.

Prior to joining FCM Fonterra had a single account manager based in New Zealand. FCM has introduced a multinational account management structure (AM) including local AMs in each country and a global account manager to oversee the entire program.

Approach

The FCM global account management and implementation teams worked in cohesion to develop the program proof of concept and blueprint for Fonterra which would serve as the guideline to implement the program efficiently in all markets. A tailored change management and communication plan was launched, including new travel booking and approval procedures to assist in controlling costs.

On-site implant at Fonterra NZ site for unique groups/events management

Pre "Go Live" launch for New Zealand and Australia due to service risks with incumbent agency 2 weeks early due to cut off by previous TMC

FCM were required to source, develop and load hotel program of 138 properties into the GDS including sourcing accommodation in remote farming areas where regular corporate hotels were not available

Challenges

There were a number of challenges that presented during the implementation process that the FCM account management and implementation teams worked to resolve:

Initial scope of implementation changed from four countries to twelve, representing an increase in total transaction volume of 26m USD.

Incumbent agency in Australia and New Zealand were not agreeable to a transition period and provided a specific cut off date which meant FCM had to implement and Go Live with these markets weeks earlier than the original agreed Go Live date.

Fragmented Human Resources data including cost centre structure which FCM implementation and account management teams rectified within the first six months of trading by completely rebuilding all cost centre structures.

Never had a true global program before which made implementation more challenging. Many staff in regional areas lack of understanding about travel programs and were resistant to change.

FCM were required to take the lead on communication between head office and regional staff.

Results

The multi-faceted implementation process was completed in 12 weeks with each market completed within the scheduled 4 week period. Some early results post implementation included:

Online adoption in OBT markets increased to 89% for Australia and New Zealand from previous 70% (New Zealand) and 89% (Australia)

In Singapore where previously no OBT had been implemented, online adoption of 75% was achieved.

Purchasing card use in New Zealand increased from 30% to 70% after implementation –allows Fonterra to reconcile in Spendvision so faster and more efficiently

FCM ClientBank Connect has delivered global dashboard reporting for Management team at Fonterra

Fonterra's Response

"FCM have been instrumental in transforming our travel program into a truly global structure. After an initial implementation of 12 countries we are about to commence phase two of implementing another 10 countries. FCM took the lead on rebuilding from scratch Fonterra's segmented human resources data which was a big task – this was all completed while also transacting and managing live bookings."